Seattle Mayor Ed Murray on Tuesday signed a bill into law that will add a 1.75 cent per ounce tax on sugary drinks in the city.

Unless there's a legal challenge or referendum, the law is expected to go into effect January 1, 2018.

Murray said he was disappointed that the tax will not apply to diet drinks.

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"I'm still pleased to sign legislation that holds corporations accountable for profiting off products that put people's health, particularly young people's health, at risk," Murray said.

Murray said studies have shown a link between poor health and poor education outcomes and that the money raised by the tax will help fund health and education programs.

“I'm proud to be signing another cutting edge piece of legislation and that Seattle leads the way on,” he said.

Labor leaders and the Chamber of Commerce had argued against the tax. Small business owners testified that the tax would either cut into their profits or they'd have to raise prices.